The Interpublic Group of (FRA:IPG) GF Value Rank : 9 (As of May. 04, 2024)

View and export this data going back to 1971. Start your Free Trial

What is The Interpublic Group of GF Value Rank?

The Interpublic Group of has the GF Value Rank of 9.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of The Interpublic Group of's GF Value Rank

For the Advertising Agencies subindustry, The Interpublic Group of's GF Value Rank, along with its competitors' market caps and GF Value Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

The Interpublic Group of's GF Value Rank Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, The Interpublic Group of's GF Value Rank distribution charts can be found below:

* The bar in red indicates where The Interpublic Group of's GF Value Rank falls into.

The Interpublic Group of GF Value Rank Related Terms

Thank you for viewing the detailed overview of The Interpublic Group of's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.

The Interpublic Group of (FRA:IPG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » The Interpublic Group of Companies Inc (FRA:IPG) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

IPG:USA

Address

909 Third Avenue, New York, NY, USA, 10022

Website

https://www.interpublic.com

Interpublic Group is among the world's largest advertising holding companies based on annual revenue. It provides traditional advertising services along with digital and other services such as public relations through various acquisitions. IPG has made these services available in over 100 countries. The company generates more than 80% of its revenue from developed regions such as the United States and Europe.